A car is an expensive investment in an individual’s life. As a car owner you want to protect your car from uncertainty and this is why you look for trusted insurance agents in Lancaster for insuring your vehicle with the most coverage. Apart from giving you a sense of protection, insurance agents also guide you with a financial backup process if your car is damaged and that process will be filing a claim.
If you’re planning for investing in an auto insurance policy, it is recommended to know about the number of claims you can make throughout the period. If you want to make the best out of your auto insurance investment decision, make sure you know the number of claims you can make.
Number of auto insurance claims allowed in a year
In general, there are no such restrictions on the number of claims you can make in a year under your auto insurance policy. However, the only thing that the insurance payer needs to keep in mind is that auto insurance claims can affect the No Claim Bonus (NCB). Moreover, it will also increase the premium when you renew the policy. If you want to get cheap auto insurance Lancaster CA with a lower premium, make a claim where you find it necessary- where the damage is huge and you have to spend a big amount for the repair.
Claims depend on the type of auto insurance coverage
Lancaster auto insurance plan comes with a host of coverage options. In the determination of the number of car insurance claims, the coverage you choose plays a major role. For instance, if you have opted for zero depreciation cover of the car insurance plan, then there will be restrictions on the number of claims that you can make in a year. Thus, it is important to know from insurance agents in Lancaster, California under what situation and policy coverage you can make limitless claims.
Maximum Limit Of Making Car Insurance Claims
There is no specific number in this case. However, it depends on the type of claim and the extent of damage caused to the vehicle. However, it is always advisable to not claim if you find the damages are minor such as a dent or a broken mirror. File the claims where the damages are severe and require expensive repairs.
Consequences of Making Multiple Car Insurance Claims
- No Claim Bonus (NCB) – The more claims you make, the more you will lose out on your NCB benefits opportunity. NCB is the discount that you earn on the premium for making no claims during the previous policy period. The percentage of NCB discount increases with every consecutive claim-free year. However, make a claim only when you find the repairing cost is higher than the NCB discount.
- Increase in premium- This is the other consequence that you’ll have to face due to the multiple claims against your car insurance. Depending on the number of your claims, the insurance company will increase your premium rates when you renew the policy.
- Deductibles- Due to the deductible component, you will receive inadequate compensation when you claim for the damages. Therefore you shouldn’t file a claim if the repairing cost is lower or a bit higher than the deductible mentioned in your policy document.
Although there are no specific limits for making claims against car insurance, however, you should still be mindful of your actions. Take your decision on the claim after considering the above-mentioned consequences as this will also benefit you in the long run.
